Monday, July 27, 2009

SBI projects a net profit of Rs 11,000 crore this fiscal

The country's largest lender, State Bank of India, has told the government that it would earn a minimum profit of Rs 11,000 crore in the current fiscal, 21 per cent more that what it achieved in the previous fiscal.

In its statement of intent submitted to the government recently, SBI indicated that the bank would post a minimum net profit of Rs 11,000 crore in the current fiscal, sources said.

The bank has given the estimate of its likely earnings, sources said, adding that depending on the pace of economic recovery the bottom line could improve significantly.

SBI's net profit increased 36 per cent to Rs 9,121 crore during 2008-09 against Rs 6,729.1 crore in the previous fiscal despite the global financial meltdown hitting the Indian economy. The economic growth during 2008-09 slipped to 6.7 per cent from over nine per cent in the previous three years.

However, the expected profit numbers for the current fiscal could not be officially confirmed from SBI.

According to a filing with stock exchanges, the bank will announce its earnings for the its first quarter (April-June) of the current fiscal on July 30, 2009.

After announcing 2008-09 numbers in May, SBI Chairman O P Bhatt had said advances and deposits were likely to grow by 25 per cent each during the current fiscal.